An electrical installation project has an approved fixed maximum budget of P3,650,000. The Bids and Awards Committee will choose the most practical bid from all the bidders. The project is set to have a 2-months duration and your company have enough manpower to undertake this, however, another project of the same scope will be undertaken and commencing in 1.5 months time. The scope of the work includes the materials, labor and all relevant works involved. The base material cost is at P1,600,000 while the labor is at P675,000. The profit is set at 18% while Permits and Inspection Fees is at P 100,000. The supervision cost is at 10% based on the labor cost, the transportation, insurance and incidentals are 5%, 6% and 9% respectively while the overhead is set at 6% and the taxes at 5%.

Required:

a.) Will you bid on the project? Why or Why Not? Justify your answer properly

b.) If yes, what will be your final bid amount?